Technical Report No. 8 PORT AND SHIPPING

I-4-6
Vietnam National Transport Strategy Study (VITRANSS)
Technical Report No. 8
Shipping and Ports
Since 1987, however, the shipping industry has been exempted from import
duties and VAT through its inclusion in the IPP, which is issued annually.
Under the 1998 IPP, the interisland shipping industry was included again
(with modernization program) and as a priority investment area, covering
purely cargo or passenger and passenger-cargo vessel operations. For
accredited shipping companies, this means the imposition of a 3% import
duty instead of the regular 20% on imported capital equipment and its
accompanying spare parts.
Accredited/registered firms are also exempt from paying income taxes from
3-6 years, depending on the status of the project. But both international and
domestic shipping companies have to pay 10% VAT on their gross receipts.
4) Tax on seafarers
The Tax Reform Act of 1997, Section 24-(A) (1) (a), considers only as taxable
the income derived by Philippine seafarers within the country. Philippine
seafarers who receive compensation for services rendered abroad as
crewmembers of a vessel engaged exclusively in international trade are
exempt from paying individual income tax.
4.1.4 Japanese Experience on Joint Vessel Ownership
Of the various governmental assistance given to the shipping industry in Japan,
the most noteworthy is the assistance provided through the Corporation for
Advanced Transport and Technology (CATT), formerly known as the Maritime
Credit Corporation. The basic objective of the CATT is centered on the
“contribution to the provision of adequate and smooth shipping and port
transport”. Although the statement is simple and abstract, it aims to promote
social stability and economic growth.
CATT Profile and Scale
Established : June 1959 as the Maritime Credit Corporation and changed to
the Corporation for Advanced Transport and Technology in
October 1997
Capital : Yen 14.9 billion (as of 31March 1999, government-financed)
Staff : 132
Operational budget: Yen 1,245.5 billion (for 1997 fiscal year)
Operating capital : Procured through government loans and privately accepted
bonds
To meet its objective, the CATT has two conditions:
1) Its assistance will be limited to domestic operators who find it difficult
obtaining adequate financing, at the same time can their project’s assure
financial viability, and